ACTIVITY 4
Both the informational and behavioral components of strategic control are necessary, but not
sufficient, conditions for successful strategy implementation. Once a strategy is developed, it
must be implemented, and part of the implementation is to establish a mechanism to monitor
and correct organizational performance. If an organization successfully implement their
strategy, it must have effective strategic control. Control systems must exercise both
informational and behavioral control, as these controls must be consistent with the strategy
that the firm is following.
Informational control is primarily concerned with whether or not the organization is “doing
the right things” it is a method of organizational control in which a firm gathers and analyzes
information from the internal and external environment in order to obtain the best fit between
the organization’s goals and strategies and the strategic environment. It addresses the
assumptions and premises that provide the foundation for an organization’s strategy. Do the
organization’s goals and strategies still “fit” within the context of the current strategic
environment? information control is part of an ongoing process of organizational learning that
continuously updates and challenges the assumptions that underlie the organization’s strategy.
Therefore, managers must scan and monitor the external environment, both the general
environment and the industry environment, so that when surprises emerge, the firm can
modify its strategies, goals, and objectives. The benefits of continuous monitoring are evident
– time lags are dramatically shortened, changes in the competitive environment are detected
earlier, and the organization’s ability to respond with speed and flexibility is enhanced.
On the other hand, behavioral controls are also a vital part of effective control systems.
Behavioral control asks if the organization is “doing things right” in the implementation of its
strategy. It is a method of organizational control in which a firm influences the actions of
employees through culture, rewards, and boundaries, as effectively implementing strategy